Indian EV market may grow by more than 40% CAGR by 2027: Report

The Indian Electric Vehicle (EV) industry is predicted to develop at a CAGR of 35-40% by 2027, according to research released on Wednesday.

According to research by Niveshaay, which administers the Green Energy smallcase, EV sales in India might reach 3-4 million units by 2025 and 10 million by 2030.

Currently, the Indian EV industry is dominated by two and three-wheeler EVs, which account for around 80% of the total automobile market.

"The Indian government aspires to increase domestic production and minimise reliance on imports. To boost local manufacturing, it has implemented Production Linked Incentive (PLI) schemes and reduced customs duties on critical minerals," said Arvind Kothari, Niveshaay's smallcase Manager and founder.

In addition, the new survey also noted that EVs are likely to account for 10-15% of new vehicle sales in India (including two-wheelers, three-wheelers, and passenger cars), owing to government incentives, rising fuel prices, and growing consumer awareness.

The number of electric vehicles sold annually is predicted to reach over 10 million by 2030 with a dramatic rise in electric bus deployment capacities along with that of heavy-duty trucks for commerce as well as single units such as cars. The share of EVs in overall new vehicle sales may account for 30-40%.

Underlining an upcoming strong EV infrastructure, the study further predicts that India will have over two million charging stations for public use throughout the nation. 

The rise in EV adoption, infrastructure, and production can also be linked to increased budget allocations for the EV industry.